I had just posted the piece on PS Business Parks when I noticed that Blackstone had defaulted on commercial mortgages on office buildings in Finland.
As I had noted a number of times giant asset managers like Blackstone and Brookfield do not acquire properties and ‘fold’ them in with the rest of their holdings–each part of the puzzle must ‘carry their own weight’–obviously with the Finland properties 45% vacant they are not carrying their weight. The point is that none of these giants care one damned bit about your money or mine–if you lose money ‘so what’–so watch out for you self.
Since PS Business Parks is part of Blackstone Real Estate it makes me think that maybe I should let go of my tiny 25 shares of PSB.
I’ll take my shareholder rights over my non-existent rights to representation as a taxpayer any time. How is this different then anything else we as investors are confronted with.? The environment changes, Blackstone or whoever needs to make a rational business decision and people suffer a loss. Is that news.? Blackstone is not in business to lose money or listen to the sob stories of investors with buyers remorse
REALITY CHECK 2023:
That’s why so many “fiduciaries” (yes that has a MEANING) are busy throwing crap against the wall and calling themselves the smartest guys. The quality of money management has slipped a long way in my 45 years of being involved. Read up on the long lost concepts of being a Partner in a firm. I know a partner in Arthur Anderson who took a total loss whem the FIRM went down…now THAT is a FIDUCIARY./PARTNER! NO ONE wants skin in the game anymore.
Read up on why GW, the Silverado Cowboy, made a point to get corporations as people….the real reason was NOT totally for fund raising although throwing shareholder returns to politicians should be a fiduciary felony. It was so the courts could not come back/clawback ill gotten gains. The saying today is, “we stole it, fair and square.”
-Be a total independent and do NOT use any fiduciary, or know-it-all money manager that is the purpose of this site, no ETFs, no CEFs, no accredited investor schemes, no one to blame.
Schwarzman,CEO of BX who owns some 20% of Blackstone shares, reaped roughly $1 billion in dividends alone. He also earned $253.1 million in compensation, most of it through incentive fees and his cut of fund profits known as carried interest.
What? Me worry about fiduciary responsibility?
Lok up their Legal Activities. Why? Me worry?
No firm cares about your investments in them.
I had the PSB/PX after the buy out thinking it would be in the best interest to keep these listed and IG in the event the company needed to access more capital.
I think Grid asked why I thought so, I did not have an answer, just an opinion. Maybe I was referencing something I read or heard from some talking head on tv.
Turns out they just started leveraging the company up on debt. I did not think this would help the IG rating so I sold 3 months or so later with less than $1,000 loss.
All this was before the current interest rate hikes so I was just chasing yield.
Full Disclosure: One of these days with all of your help I will learn.
I promise my friends.
This is the God’s honest truth. I finally bailed on the tender. Not pretty. Now who knows where they are trading. I had a friend say it’s very poorly. Low teens?
Yeah I know it’s blackstone… But put me off for anything PSA has. With so much PE Money flowing at risk, I guess we’re small potatoes
If you Prefer–we are all meaningless to these folks–got to watch you backside.
only two times the company cares about you as an investor:
1. when they are trying to get you to invest (provide new money to them),
and
2. when company management owns so much of what you are invested in that they probably won’t screw you because they would be screwing themselves. This is REALLY rare, but there are a few (illiquid) preferreds that have been like that.